> For the complete documentation index, see [llms.txt](https://docs.prophecy.bet/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.prophecy.bet/create-market.md).

# Create Market

The Market Creation functionality in Prophecy allows users or administrators to create new prediction markets. These markets enable participants to speculate on the outcomes of various events, such as crypto trends, sports matches, financial trends, or political results.

1. **Purpose of Market Creation**

The Market Creation feature is essential for:

* Enabling diverse prediction opportunities.
* Facilitating liquidity and participation in new markets.
* Expanding the platform’s ecosystem by introducing new categories and events.

### 2. Key Components of a Market

#### 1. Market Metadata

Each market contains essential details:

* Market ID: Unique identifier for the market.
* Event Description: A brief description of the event (e.g., "Will Team A win against Team B?").
* Outcomes: Possible results for the event (e.g., "YES" and "NO").
* Category: The type of event (e.g., Crypto, Sports, Politics, Finance).
* Expiration Time: The timestamp when the market closes for trading.

#### 2. Liquidity Pool

* Initial collateral added to the market to enable trading.
* Utilizes the AMM model for price discovery and continuous liquidity.

#### 3. Resolution Source

* A trusted oracle or manual resolution mechanism to determine the event outcome.